PEB - Pacific Edge Ltd

[biker]

.............As far as the valuation is concerned - I guess the answer is quite easy............


........Here is my attempt: ..................my DCF says that the share has (assuming a high risk discount rate of 16%) a NPV of 37 cents............

...................On the positive side ... admittedly - this calculation is very sensitive to the assumed initial growth rate, If I start with 100% (instead of 75%) initial growth rate pa (i.e. 18 million revenue in 2017), than the NPV of the share would be already 87 cents.

Oh yes - and if I use a 300% starting growth rate (which would bring them close to the 100 million revenue they promised in 2018), than the NPV of the PEB share would be nearly $38.

Thanks BP. Good to know we now have a narrow range of PEB share value. Somewhere between 37c and $38.

[trader_jackson]

Thanks BP. Good to know we now have a narrow range of PEB share value. Somewhere between 37c and $38.

Take the average

[BlackPeter]

Thanks BP. Good to know we now have a narrow range of PEB share value. Somewhere between 37c and $38.

Very funny - and apologies that I was that unclear in communicating my views. Just for the record - I didn't intend to define with these examples a range, just gave some examples illustrating how unlikely in my view a NPV above the current SP would be.

If you want to set a range for the SP value, than I think the lower boundary for PEB clearly needs to sit at NIL (in my view a quite likely outcome). As upper boundary (say 90%) I would pick a value well below the quoted 37 cents.

The other values are just (for arguments sake) assuming that some of PEB's predictions might be true, but personally I think that the story of Santa Claus and the Easter bunny would have more credibility.

However - why don't you just give us your DCF assumptions (and the reasons behind them) - would make a much better discussion?

[biker]

[QUOTE=BlackPeter;613138]Very funny - and apologies that I was that unclear......

/QUOTE]

And apologies that I was trying to be funny.

[RGR367]

Exchanges here never fail to make me smile

[skid]

Very funny - and apologies that I was that unclear in communicating my views. Just for the record - I didn't intend to define with these examples a range, just gave some examples illustrating how unlikely in my view a NPV above the current SP would be.

If you want to set a range for the SP value, than I think the lower boundary for PEB clearly needs to sit at NIL (in my view a quite likely outcome). As upper boundary (say 90%) I would pick a value well below the quoted 37 cents.

The other values are just (for arguments sake) assuming that some of PEB's predictions might be true, but personally I think that the story of Santa Claus and the Easter bunny would have more credibility.

However - why don't you just give us your DCF assumptions (and the reasons behind them) - would make a much better discussion?

That was totally unfair BP........letting the cat out of the bag about the Easter Bunny so close to Easter---Im shattered! (and Santa too--Are you sure about that?)....(now that the myth has been blown,I fear everyone's going to start being naughty again (and that aint pretty on this thread)---Enjoy your Easter treats all..(who ever brings them)

[Minerbarejet]

That was totally unfair BP........letting the cat out of the bag about the Easter Bunny so close to Easter---Im shattered! (and Santa too--Are you sure about that?)....(now that the myth has been blown,I fear everyone's going to start being naughty again (and that aint pretty on this thread)---Enjoy your Easter treats all..(who ever brings them)

There is a parenthesis missing ---(amongst other things).
Just thought you should know.

[skid]

There is a parenthesis missing ---(amongst other things).
Just thought you should know.

Thank you Miner..
Here you go ) It fell on the floor

[Minerbarejet]

Thank you Miner..
Here you go ) It fell on the floor

I hope you washed and dried it before you put it back up here.

[skid]

I would have ,but I was afraid it was going to shrink....just dont touch it--just to cover myself in the future (((((((( )))))))--Happy Easter to all